NPD Monthly Column Down but by no means out
It’s no secret that retailers selling toys in the UK are having mixed fortunes. Looking around, there are those who are closing stores to help stabilise the business, those who are treading water, and some who continue to open stores and thrive in the economic downturn. What is evident, however, is that whilst value sales of toys are down 2% year-to-date October, the number of boxes being purchased isn’t particularly any worse, down 3%. Much of the UK trend could be attributed to a difference in promotional activity compared to 2011 with more planned in coming weeks, together with the likelihood that due to the economic situation consumers are leaving it slightly later to buy their Christmas presents.
Over to Europe So how does the UK compare with other
European countries? A hop across the English Channel in France and we see sales are struggling more so than in the UK. With sales down 5%, chances of growth in this country for the full year are smaller. Last year Beyblade was the second largest property in France, driving €88m at retail in NPD’s sample covering 69% of French sales. Cars, which had become an evergreen licence, was almost as big and, as expected, those two franchises took a natural dip in 2012. That said, in France, like across the rest of the continent, after their anglo- saxon success, pre-school tablets are being launched for the first time this Christmas and even if they won’t compensate for the decline recorded since the beginning of the year, they are creating a big buzz around the toy category.
Looking south into Spain things are even
worse. The general economic downturn in Spain has been well documented in the last couple of years, and this has really driven consumers to tighten their belts. The sales of toys are down 14% so far this year, to the end of October, similar to many other industries in this country, with units down 15%. Neighbouring country Portugal is no better off, with money spent on toys declining 12% on 13% fewer units. With that
32 Toyworld
Toy Sales to October 2012 25% of sales still to come in December
Jez Fraser-Hook takes a look at why toy market sales are down in the UK, and how this compares with other countries.
“Much of the UK trend could be attributed to a difference in promotional activity compared to 2011 with more planned in coming weeks.”
said, Spain is still a very dynamic country where innovative properties often have a flourishing time. Even with the decline in sales seen there, Monster High has managed to break into girls’ hearts and is performing exceptionally well. Heading eastward to Italy, sales are looking
stronger than earlier in the year, and now following the exact trend of the UK. There, like in most European markets, Building Sets are gaining shares with a double-digit growth rate YTD. Germany has one of the best economic climates in Europe, although consumers are still looking at ways to cut their spend given the financial noise from countries all around them. As such, toy sales are slower than in recent years, but remain in growth at +4%. Unit sales, however, give insight into the slower nature of purchasing in Germany, with boxes shifting at just under the same rate last year.
Back to the UK Coming back home, will the toy market
end the year on a positive? There’s some evidence, from our consumer panel and various other sources, that parents don’t like their children to lose out at Christmas time. NPD track the sales of food eaten outside of the house, sales of which are steadily rising, at just 1% ahead of last year. Looking deeper, however, it is families, or parties with kids that seem to be driving the current trend, suggesting that whilst consumers are finding it tough and holding back on some purchases, they still want to be able to treat their children. The next few weeks will determine if this is to flow through to toys to bring the market back to positive. Remember, a quarter of annual toy sales are purchased in the month of December, so there’s still plenty of opportunity to be had.
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